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CUET Accountancy 2025 PYQs27 May Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 27 May Shift 2

Accounting

past year questions, Partnership, CUET Accountancy 2025 27 May Shift 2

Easy

common

Which Act empowers the Central Government to prescribe a maximum number of partners in a partnership firm :-

Solution

✅ Correct Option: 3

The Companies Act 2013 empowers the Central Government to prescribe the maximum number of partners in a partnership firm.

Though the Partnership Act 1932 is the primary legislation governing partnerships in India, it does not specify any limit on the number of partners. The authority to impose such a limit comes from Section 464(1) of the Companies Act 2013.

This section states that no association or partnership consisting of more than the prescribed number of persons shall be formed for carrying on any business, unless it is registered as a company under the Companies Act or formed under any other Indian law.

As per the current provisions under the Companies Act 2013, the maximum number of partners allowed is:

  • Banking business: 10 partners
  • Other businesses: 50 partners

If a partnership exceeds these limits, it must either reduce the number of partners or register itself as a company under the Companies Act 2013.

This provision prevents large unincorporated associations from operating without proper regulatory oversight that companies are subject to.

Related questions:

2026: 29 May Shift 1

The Liability of the partners in a firm is__________

2025: 27 May Shift 1

Which combination of statements are false about partnership-

(A) Interest on partner's loan is to be given @ 12% p.a. If the deed is silent about the rate.

(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.

(C) Methods of settlement of dispute among the partners can't be part of the partnership deed.

(D) Each partner carrying on the business is the principal as well as the agent for all the other partners

Choose the correct answer from the options given below:

  1. (A), (B) and (D) only
  2. (A), (B) and (C) only
  3. (A), (B), (C) and (D)
  4. (B), (C) and (D) only

2026: 31 May Shift 1

Ram and Shyam are equal partners. Their capitals as on April 01, 2025 were Rs. 50,000 and Rs. 1,00,000 respectively. After the accounts for the financial year ending March 31, 2026 have been prepared, it is discovered that interest at the rate of 6 per cent per annum, as provided in the partnership deed has not been credited to the partners' capital accounts.

Choose the correct adjusting entry from the options given below:

2025: 22 May Shift 2

Which of the following is not a part of capital account under the fixed Capital Method?

2026: 13 May Shift 2

Nimrat, Simrat and Harjeet are partners sharing profits and losses in the ratio of 5 : 3 : 2. The partnership deed provides for charging interest on drawings @ 10% p.a. The drawings of Nimrat, Simrat and Harjeet during the year ending March 31, 2025 amounted to Rs. 60,000, Rs. 45,000 and Rs. 30,000 respectively, which were made on 1st April, 2024. After the final accounts have been prepared, it was discovered that interest on drawings has not been taken into consideration. If the necessary adjustment is made for rectification of this error, then:

2022: 8 Aug Shift 2

Which from the following is not a feature of a partnership firm?

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